The view that excessive growth of the money supply over long periods leads to inflation
A)is accepted by the monetarists but not by mainstream macroeconomists.
B)is the main contribution of the rational expectations theory.
C)had been absorbed into the mainstream of macroeconomics.
D)is known as the monetary rule.

Question

Quizplus · Accepted Answer

The view that excessive growth of the money supply over long periods leads to inflation has been widely accepted and absorbed into mainstream macroeconomics, not just by monetarists.

The View That Excessive Growth of the Money Supply Over